Car-buying services: Skip the dealership stress.
If you鈥檝e ever dreaded going to the car dealership, you鈥檙e not alone. That鈥檚 why services exist that help people buy cars without ever setting foot on a lot.
Cars are displayed at a dealership in Butler, Pa.
Keith Srakocic/AP/File
If you鈥檝e ever dreaded going to the car dealership, you鈥檙e not alone. That鈥檚 why services exist that help聽people聽buy cars without ever setting foot on a lot.
Once you聽聽model, car-buying services use certified representatives to do all the searching and haggling for you. And online car shops enable you to buy from your living room couch.
鈥淧eople hire representation when they鈥檙e not an expert in that field 鈥� and car buying today is complex,鈥� said Oren Weintraub, president of car-buying concierge service AuthorityAuto.com. 鈥淵ou negotiate price, interest rates or lease rates, the bank fees, and once you get all that done, you鈥檙e not finished. 鈥� A lot of people are just not prepared to effectively negotiate a car deal for themselves.鈥�
If you want an expert鈥檚 help with finding, negotiating and聽鈥斅爋r you want someone to do those things for you entirely 鈥斅燾onsider one of the following.
Car concierges
What they do:聽Auto concierges learn about聽a shopper鈥檚 vehicle needs and preferences, then do the legwork. That includes searching dealership inventories, haggling and negotiating extended warranty contracts. Concierges will聽even have the car delivered to your home or office so you can sign the sales contract.
Car-buying concierge is a highly specialized service that only a few companies聽currently offer.聽听补苍诲听聽are two.
笔补测尘别苍迟:听Concierges typically charge an upfront flat fee, or sometimes a percentage of the amount they save you on the vehicle purchase. This fee depends on the car they鈥檙e tasked with finding.
What to know:
- The fees might be largely offset by the amount a concierge can save you by聽negotiating.
- Concierges can purchase your new car, so you never have to visit a dealership.
Club car-buying programs
What they do:聽Companies such as聽,听听补苍诲听聽have their own auto-buying programs. Some credit unions, such as聽, also offer them.
Members input their ideal car model and features online, then the company鈥檚 representatives search for a match within their certified dealership network. These approved dealerships offer low, prearranged pricing in exchange for the company鈥檚 referrals. Once your representative聽has found an option, he or she聽will arrange聽for you to visit the dealership. You can take a test drive and sign a contract if you think it鈥檚 the right car for you.
Payment:聽There might be a small fee for this service, but it鈥檚 often free with membership.
What to know:
- Your car-buying professional might not find the exact model or color you wanted in the dealership network. You鈥檙e more likely to find the car you prefer聽with these services if you鈥檙e looking for a widely available model.
- Many of these representatives can offer advice about聽which cars are best in class or suggest vehicles you might not have considered.
- You鈥檒l still be offered an extended warranty and other additional products in the finance and insurance office. But at least the price of the car is locked in.
Car brokers
What they do:聽Brokers are often former car salespeople, well-versed in the tactics of dealerships. They can operate individually or as part of a large company with聽multiple agents.
You聽can hire a broker to search car聽lots, haggle and buy your ideal car for the best price. You can even hire one聽to negotiate on your behalf for a car you鈥檝e already found.
笔补测尘别苍迟:听Some brokers charge a small fee or none at all, but they receive an undisclosed commission from the dealership. Buyers should be aware this raises the possibility that some brokers could be incentivized to settle for a higher price or only visit dealerships with which he or she has a good relationship.
What to know:
- Auto-buying programs and car concierges provide similar services聽and don鈥檛聽take money from dealerships.
- Find聽trusted car brokers through online review sites, such as Yelp, or recommendations from friends.
Online car-buying stores
What they do:聽There鈥檚 an emerging market of peer-to-peer car buying websites, including聽听补苍诲听. You simply go online, browse the virtual car lot, and purchase a vehicle either for pickup or home delivery. This takes as little as a few minutes.
Payment:听狈辞苍别.
What to know:
- Most websites offer no-haggle pricing, though this doesn鈥檛 automatically mean it鈥檚 a good deal. Check auto-pricing guides, such as聽听辞谤听, to see if the cost of the car you want makes sense given its mileage, options and condition.
- There鈥檚 usually a聽seven-day money-back guarantee. This return policy partially offsets the lack of availability of test drives, but some companies are making strides.聽, a San Francisco startup, can meet you anywhere in the city if you want to take one of its listed cars for a spin.
- The industry is still new, so these sites have limited inventory and your car choice will be restricted.
Are they right for you?
Visiting the dealership still has some advantages. It makes it easier to arrange test drives and聽compare models, and dealerships sometimes have the lowest interest rates for lease deals.
Still, although they might have聽fees or membership dues, auto-buying programs can save car shoppers time, stress and potentially thousands of dollars. If you聽don鈥檛 have the time to search the market for the right car 鈥� or you simply don鈥檛 want to 鈥� it can be a relief to have an聽expert do the heavy lifting.
Nicole Arata is a staff writer at NerdWallet, a personal finance website. Email:聽narata@nerdwallet.com.
The article聽originally appeared on聽.